Zero-coupon bonds
A)offer a return in the form of a deep discount off the face value.
B)result in zero interest expense for the issuer.
C)result in zero interest revenue for the investor.
D)are reported as shareholders' equity by the issuer.

Question

Quizplus · Accepted Answer

Zero-coupon bonds do not pay any interest payments but are sold at a deep discount from their face value, and the return for investors is the difference between the purchase price and the face value at maturity.

Zero-Coupon Bonds